Carpetright Share Discussion Threads

[bc4] 27/8/2019 19:36

Why are you worried your not invested here so let other people who have a bit more bottle than you to take a chance!

[phil hennigan] 27/8/2019 19:08

So the people who you owe 25 million now run your credit facilities, how convenient, will ensure they get their 25 million before anyone else gets paid, or just refinance the 25 million to 35 million in 2 years with compounding interest, absolute shambles, one thing for certain, meritor will do absolutely fine out of this deal whether the share price hits 50p or 5p.

[shanur90] 27/8/2019 13:35

Buys are showing as sells

[shanur90] 27/8/2019 13:34

They want to keep it below 30percent otherwise they need to make a takeover bid so relax yourself

[clocktower] 27/8/2019 13:23

How much dilution will there be if they turn some of that debt into equity?

I expect it will not be long before many current stockholders will be rushing for the doors, regardless what they post on these threads while they try to get the share price up.

[bouleversee] 27/8/2019 13:19

I bought for recovery some months ago (when some people on here were advising buy) at nearly 30p so still some way to go before I break even on that purchase and as for my original purchase, many years ago, better not go there...

I hope the anticipated recovery doesn't take too long.

I need to inform myself as to what exactly buying some other company's debt implies.

[kloppite] 27/8/2019 12:55

Because there are one or two on here who are desperate to see them fold.
Think they might be Tapi employees. Lol
Not sure what this means for Tapi now as their whole strategy was to bring down CR

[shanur90] 27/8/2019 12:23

If an offer comes it will be a huge re rate momentum is king you see how tcg reacted on news of turks taking over. Any whiff of takeover gives a massive reaction. Bottom is in here good news today story got better what's there to complain about

[shanur90] 27/8/2019 12:22

Ifs and buts all nonsense here. What we can see if debt swallowed major shareholder backing recovery play and game on

[shanur90] 27/8/2019 12:21

They just swallowed a huge amount of debt and you lot are talking through ur asses

[tomboyb] 27/8/2019 11:54

Well the hedge fund holds ALL the cards here -

If they feel that there will be further equity weakness considering the geoploitical situation and that is not reflected in a possible recovery then there is the option of going private -

Secondly in that scenario they could make an equity lowball offer for the company -

[philobeddoe] 27/8/2019 11:46

If it's a no deal brexit, which is currently looking likely, I think shares could take a big hit. Even the run up to October 31st will start to see a sell off in my opinion. For that reason any buys I make between now and then will be extremely short term holds.

[leadersoffice] 27/8/2019 10:50

John Stevenson, an analyst at Peel Hunt, Carpetright’s house broker, said Tuesday’s debt deal “takes away any uncertainty regarding the group’s refinancing ahead of peak”.

further....

Greg Lawless, an analyst at Shore Capital Markets, said: “In our view, this is another staging post in the Carpetright recovery following the CVA and rescue rights issue last year, which gave the company a fighting chance to rebuild profits and cash flow to a more sustainable level.”


Buy for recovery

[tomboyb] 27/8/2019 10:27

Equity holders now are on a complete back foot -

This is a Hedge fund so I would be incredibly surprised to see any offer in favor of equity holders -

[boraki] 27/8/2019 10:26

Meditor has bought the £40.7mln revolving credit facility from Natwest and AIB, and will now work with Carpetright to provide a “more stable and longer-term funding platform”

Carpetright -
Meditor owns a 29.9% stake in Carpetright
Carpetright PLC’s (LON:CPR) biggest shareholder has bought £41mln worth of debt from the troubled retailer’s lenders.

Natwest and Allied Irish Banks had agreed to make up to £40.7mln available to Carpetright in the form of a revolving credit facility.

READ: Carpetright picks itself up off the floor
But hedge fund Meditor, which owns almost a third of Carpetright’s shares, has now purchased that facility.

A £6.5mln overdraft will effectively be taken on by Meditor as well.

Meditor said it would now work with bosses to provide a “more stable and longer-term funding platform”.

Carpetright underwent an emergency restructure last year, closing shops and asking for rent cuts in a bid to keep it afloat.

There are signs that the turnaround plans are having the desired effect. A trading update in June showed that losses narrowed in the latest financial year, while sales have returned to growth in the opening few months of the new year.



Just thought i would add to your post Tom,,

:-)

[tomboyb] 27/8/2019 10:20

www.proactiveinvestors.co.uk/companies/news/901526/carpetrights-biggest-shareholder-buys-41mln-of-retailers-debt-901526.html

40mill+ debt taken v 15mill of equity value -

This is going to be interesting -

Do they take 100% or not -

[aim11] 27/8/2019 10:15

Except with Clinton’s, the buyer of the debt didn’t own the equity. It was a supplier who was looking to buy Clinton’s so acquires a majority of the debt and just called it in, causing Clinton’s to collapse and merge with the supplier. I don’t see this as the same as Meditor guaranteeing the RCF as a 30% equity holder.

[s34icknote] 27/8/2019 09:45

I remember Clinton card debt being bought from Barclays and they put the company into administration to buy it on the cheap !!! Good luck will be watching to see how this one goes !Sicknote

[aim11] 27/8/2019 09:35

This is bad news for Tapi, who will now have to decide how deep it’s shareholders are willing to dig. Carpetright now has a multi year lifeline, does Tapi? I doubt this was ever part of Tapi’s plan

[boraki] 27/8/2019 09:07

Phil,

What do you mean by, "they will make a killing"

[phil hennigan] 27/8/2019 08:52

Meritor already own about 30% of carpet right shares.
And the loan which matures of 25million in June 2020 is also funded / provided by meritor.
Meritor are ensuring it doesn't close before they make a killing.
Far too much going on here behind the scenes, leave well alone.

[boraki] 27/8/2019 08:29

Should do well today.

Bodes well for the future me thinks

good luck all holders

[shanur90] 27/8/2019 08:28

Took me ages to buy tho lots of orders in the background apparantly ain't seen them yet tho